Report: Winn-Dixie sues Dollar General

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NEW YORK — Winn-Dixie has filed suit against Dolgencorp, the parent company of Dollar General. The grocer confirmed that the suit was filed because Dolgencorp “knowingly violates legal, noncompete provisions of Winn-Dixie leases in shopping centers in which both businesses operate,” Winn-Dixie told the Jacksonville Business Journal in an email.

The suit, filed in the U.S. District Court for the Southern District of Florida in West Palm Beach, claims that the discount retailer Dollar General should not be selling groceries at stores that are in shopping centers where Winn-Dixie is the anchor tenant. As part of its leases, Winn-Dixie has the exclusive right to sell groceries.

In addition, Winn-Dixie claims that Dollar General is in violation of its grocery exclusive arrangement with the supermarket operator. According to Winn-Dixie, violation of this agreement comes from the following:

More than 10% of the store's sales come from groceries, or the store has more than 500 ft. of grocery shelf space; and/or

Dollar General needs to be at least 500 sq. ft. to 1,000 sq. ft. away from Winn-Dixie (if landlord owns that property) to sell groceries.